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- What are the three reasons why the CPI is hard to measure accurately?
- Correct Answer(s)
- Consumers substituting one good for another because of price
- New products to buy and new ways for consumers to buy them
- Changes in the quality of the same good, over time
- Incorrect Answer(s)
- The difference between nominal and real buying power
- Changes in the tax rate and therefore in take-home income
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